This course is to summarize the state of the art of Petroleum Economics Concept Based on Engineering Economics. It included the example problems to illustrate the use of various theoretical solutions. In this course we will discuss the time value of money concepts, different types of interest arrangement, converting cash flows (cash inflows or outflows) from one period to another, methods used to select the best economic service producing investments, methods used to select the best economic revenue producing investments (mutually exclusive and non-mutually exclusive), the development of after-income tax cash flows, expected value concept and other useful statistical techniques.

All of concepts in this course are presented in a hands-on manner. You may be already reasonably familiar with some of the concepts; in which case, you may skip those and proceed to the ones that you are not familiar with. You will notice that most of the methods presented if properly used, will give the same results. The reason for including so many methods is to complete the presentation. In some cases it may be advantageous to use on method over the other. Therefore, it is necessary that you be familiar with all of the methods presented.

This course compiled as aid to engineers and production people in the Petroleum Industry who have the responsibility of planning and decision making in oil or gas field development. It includes fundamental principles of engineering economics used in petroleum industry. It also included the tables, data and general information which it will be value to everyone who responsible to make decision making in petroleum economics domain.

Much material of this course has been published previously and is reassembled in this course. However, there is also a considerable amount of new material included that will assist the participants. In this course, it has also included example problems to illustrate the use of various theoretical solutions. Wherever possible, it has not only discussed practical difficulties that one may encounter while using the theoretical solutions, but it has also listed some of the method that one can used to obtain the desired information.

This course is mainly directed to the practicing professionals who make engineering calculations and decision on oil and gas field development. For managers, the course helps to review the present state of the art of petroleum engineering economics used for decision-making according to field economics parameters.